Pakistan's Federal Constitutional Court (FCC), the country's apex constitutional tribunal established under the 27th Amendment, has struck down Section 7E of the Income Tax Ordinance 2001, declaring it unconstitutional and void from its inception. The provision, introduced through the Finance Act of 2022, allowed tax authorities to levy a one percent annual tax on the capital value of immovable properties worth over 25 million Pakistani rupees, based on notional rather than actual income earned. The ruling, delivered by a two-judge bench in Islamabad, nullifies all tax notices and proceedings issued under the provision and deals a significant blow to the Federal Board of Revenue's property taxation framework.